Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MD&A discusses Dominion Energy’s results of operations, general financial condition and liquidity and Virginia Power’s results of operations. MD&A should be read in conjunction with the Companies’ Consolidated Financial Statements. Virginia Power meets the conditions to file under the reduced disclosure format, and therefore has omitted certain sections of MD&A.

Contents of MD&A

MD&A consists of the following information:

Forward-Looking Statements—Dominion Energy and Virginia Power

Accounting Matters—Dominion Energy

Results of Operations—Dominion Energy and Virginia Power

Segment Results of Operations—Dominion Energy

Outlook—Dominion Energy

Liquidity and Capital Resources—Dominion Energy

Future Issues and Other Matters—Dominion Energy

Forward-Looking Statements

This report contains statements concerning the Companies’ expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In most cases, the reader can identify these forward-looking statements by such words as “path,” “anticipate,” “estimate,” “forecast,” “expect,” “believe,” “should,” “could,” “plan,” “may,” “continue,” “target” or other similar words.

The Companies make forward-looking statements with full knowledge that risks and uncertainties exist that may cause actual results to differ materially from predicted results. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Additionally, other factors may cause actual results to differ materially from those indicated in any forward-looking statement. These factors include but are not limited to:

Unusual weather conditions and their effect on energy sales to customers and energy commodity prices;

Extreme weather events and other natural disasters, including, but not limited to, hurricanes, high winds, severe storms, earthquakes, flooding, wildfires, climate changes and changes in water temperatures and availability that can cause outages and property damage to facilities;

The impact of extraordinary external events, such as the pandemic health event resulting from COVID-19, and their collateral consequences, including extended disruption of economic activity in the Companies’ markets and global supply chains;

Federal, state and local legislative and regulatory developments;

Changes in or interpretations of federal and state tax laws and regulations, including those related to tax credits or other incentives;

Risks of operating businesses in regulated industries that are subject to changing regulatory structures;

Changes to regulated electric rates collected by the Companies and regulated gas distribution rates collected by Dominion Energy;

Changes in rules for RTOs and ISOs in which the Companies join and/or participate, including changes in rate designs, changes in FERC’s interpretation of market rules and new and evolving capacity models;

Risks associated with Virginia Power’s membership and participation in PJM, including risks related to obligations created by the default of other participants;

Risks associated with entities in which the Companies share ownership with third parties, such as Stonepeak’s noncontrolling interest in the CVOW Commercial Project, including risks that result from lack of sole decision-making authority, disputes that may arise between the Companies and third party participants and difficulties in exiting these arrangements;

Timing and receipt of regulatory approvals necessary for planned construction or growth projects and compliance with conditions associated with such regulatory approvals;

The inability to complete planned construction, conversion or growth projects at all, or with the outcomes or within the terms and time frames initially anticipated, including as a result of increased public involvement, intervention or litigation in such projects;

Risks and uncertainties that may impact the Companies’ ability to construct the CVOW Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers;

Risks and uncertainties associated with the timely receipt of future capital contributions, including optional capital contributions, if any, from Stonepeak associated with the construction of the CVOW Commercial Project;

Changes to federal, state and local environmental laws and regulations, including those related to climate change, the tightening of emission or discharge limits for GHGs and other substances, more extensive permitting requirements and the regulation of additional substances;

Cost of environmental strategy and compliance, including those costs related to climate change;

Changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities;

Difficulty in anticipating mitigation requirements associated with environmental and other regulatory approvals or related appeals;

Unplanned outages at facilities in which the Companies have an ownership interest;

The impact of operational hazards, including adverse developments with respect to plant safety or integrity,

equipment loss, malfunction or failure, operator error and other catastrophic events;

Risks associated with the operation of nuclear facilities, including costs associated with the disposal of spent nuclear fuel, decommissioning, plant maintenance and changes in existing regulations governing such facilities;

Changes in operating, maintenance and construction costs;

The availability of nuclear fuel, natural gas, purchased power or other materials utilized by the Companies to provide electric generation, transmission and distribution and/or gas distribution services to their customers;

Domestic terrorism and other threats to the Companies’ physical and intangible assets, as well as threats to cybersecurity;

Additional competition in industries in which the Companies operate, including in electric markets in which Dominion Energy’s nonregulated generation facilities operate and potential competition from the development and deployment of alternative energy sources, such as self-generation and distributed generation technologies, and availability of market alternatives to large commercial and industrial customers;

Competition in the development, construction and ownership of certain electric transmission facilities in the Companies’ service territory in connection with Order 1000;

Changes in technology, particularly with respect to new, developing or alternative sources of generation and smart grid technologies;

Changes in demand for the Companies’ services, including industrial, commercial and residential growth or decline in the Companies’ service areas, failure to maintain or replace customer contracts on favorable terms, changes in customer growth or usage patterns, including as a result of energy conservation programs, the availability of energy efficient devices and the use of distributed generation methods;

Risks and uncertainties associated with increased energy demand or significant accelerated growth in demand due to new data centers, including the concentration of data centers primarily in Loudoun County, Virginia and the ability to obtain regulatory approvals, environmental and other permits to construct new facilities in a timely manner;

The technological and economic feasibility of large-scale battery storage, carbon capture and storage, small modular reactors, hydrogen and/or other clean energy technologies;

Receipt of approvals for, and timing of, closing dates for acquisitions and divestitures;

Impacts of acquisitions, divestitures, transfers of assets to joint ventures and retirements of assets based on asset portfolio reviews;

Adverse outcomes in litigation matters or regulatory proceedings;

Counterparty credit and performance risk;

Fluctuations in the value of investments held in nuclear decommissioning trusts by the Companies and in benefit plan trusts by Dominion Energy;

Fluctuations in energy-related commodity prices and the effect these could have on Dominion Energy’s earnings and the Companies’ liquidity position and the underlying value of their assets;

Fluctuations in interest rates;

Changes in rating agency requirements or credit ratings and their effect on availability and cost of capital;

Global capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms;

Political and economic conditions, including tariffs, inflation and deflation;

Employee workforce factors including collective bargaining agreements and labor negotiations with union employees; and

Changes in financial or regulatory accounting principles or policies imposed by governing bodies.

Additionally, other risks that could cause actual results to differ from predicted results are set forth in Part I. Item 1A. Risk Factors in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

The Companies’ forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. The Companies caution the reader not to place undue reliance on their forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. The Companies undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Accounting Matters

As of March 31, 2025, there have been no significant changes with regard to the critical accounting policies and estimates disclosed in MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024. The policies disclosed included the accounting for regulated operations, AROs, income taxes, accounting for derivative contracts and financial instruments at fair value, use of estimates in goodwill impairment testing, use of estimates in long-lived asset impairment testing, held for sale classification and employee benefit plans.

Results of Operations—Dominion Energy

Presented below is a summary of Dominion Energy’s consolidated results:

		2025				2024				$ Change
(millions, except EPS)
First Quarter
Net income attributable to Dominion Energy		$	646			$	441			$	205
Diluted EPS			0.75				0.50				0.25

Overview

First Quarter 2025 vs. 2024

Net income attributable to Dominion Energy increased 46%, primarily due to the absence of lower market-related impacts on pension and other postretirement plans, higher rider equity returns reflecting increased capital investments at Virginia Power, decreased unrealized losses on economic hedging activities, an increase in sales to electric utility customers attributable to weather and the absence of an impairment associated with the Questar Gas Transaction. These increases were partially offset by a decrease in net investment earnings on nuclear decommissioning trust funds and the closings of the East Ohio, Questar Gas and PSNC Transactions.

Analysis of Consolidated Operations

Presented below are selected amounts related to Dominion Energy’s results of operations:

		First Quarter
		2025				2024				$ Change
(millions)
Operating revenue		$	4,076			$	3,632			$	444
Electric fuel and other energy-related purchases			962				959				3
Purchased electric capacity			9				12				(3	)
Purchased gas			147				120				27
Other operations and maintenance			898				855				43
Depreciation and amortization			582				621				(39	)
Other taxes			209				202				7
Impairment of assets and other charges			46				30				16
Other income (expense)			5				119				(114	)
Interest and related charges			480				574				(94	)
Income tax expense			55				55				—
Net income (loss) from discontinued operations including noncontrolling interests			(1	)			118				(119	)
Noncontrolling interests			46				—				46

An analysis of Dominion Energy’s results of operations follows:

First Quarter 2025 vs. 2024

Operating revenue increased 12%, primarily reflecting:

A $192 million increase to recover the costs and an authorized return, as applicable, associated with Virginia Power non-fuel riders;

A $99 million increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season;

A $53 million increase in non-fuel base rates associated with the settlement of the electric base rate case in South Carolina;

A $51 million net increase associated with market prices affecting Millstone, including economic hedging impacts of net realized and unrealized losses on freestanding derivatives ($67 million);

A $23 million increase in transition service agreements primarily associated with the East Ohio, Questar Gas and PSNC Transactions;

An $18 million increase in sales to electric utility retail customers associated with growth; and

A $15 million increase due to the absence of an unplanned outage at Millstone.

These increases were partially offset by:

A $29 million net decrease in fuel-related revenue as a result of a decrease in commodity costs associated with sales to electric utility retail customers ($55 million), including revenue for the deferred fuel securitization and electric utility customers who elect to pay market based or other negotiated rates and related settlements of economic hedges at Virginia Power effective March 2024, partially offset by an increase in commodity costs associated with sales to gas utility customers ($26 million); and

A $29 million decrease associated with severe weather events affecting Virginia Power.

Electric fuel and other energy-related purchases remained substantially consistent as the increase in the use of purchased renewable energy credits ($63 million) was substantially offset by lower commodity costs for electric utilities ($67 million), which are offset in operating revenue and do not impact net income.

Purchased gas increased 23%, primarily due to an increase in commodity costs for gas utility operations, which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 5%, primarily due to an increase in charges associated with severe weather events including storm damage and restoration costs affecting Virginia Power ($50 million) and an increase in salaries, wages and benefits ($15 million), partially offset by the absence of costs associated with the business review completed in March 2024 ($15 million).

Depreciation and amortization decreased 6%, primarily due to the absence of RGGI-related amortization ($92 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($41 million).

Impairment of assets and other charges increased 53%, primarily due to a charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($45 million) and the absence of a benefit from the establishment of a regulatory asset associated with previously incurred storm damage and restoration costs in connection with the settlement of the 2023 Biennial Review ($17 million), partially offset by the absence of a charge in connection with a settlement of an agreement ($47 million).

Other income decreased 96%, primarily due to net investment losses in 2025 compared to net investment gains in 2024 on nuclear decommissioning trust funds ($396 million), a decrease in non-service components of pension and other postretirement employee benefit plan credits ($23 million) and a decrease in earnings from other investments ($21 million), partially offset by the absence of lower market-related impacts on pension and other postretirement plans ($316 million) and an increase in AFUDC associated with rate-regulated projects ($15 million).

Interest and related charges decreased 16%, primarily due to lower unrealized losses in 2025 compared to 2024

associated with freestanding derivatives ($39 million), variable rate debt repaid in 2024 from business review proceeds ($31 million) and higher premiums on interest rate derivatives ($16 million).

Income tax expense remained substantially consistent as higher pre-tax income ($72 million) was offset by an increase in renewable energy tax credits ($54 million) and a benefit associated with the remeasurement of an uncertain tax position ($18 million).

Net income from discontinued operations including noncontrolling interests decreased $119 million, primarily due to the absence of earnings from operations following the closing of the Questar Gas Transaction ($142 million), PSNC Transaction ($100 million) and East Ohio Transaction ($77 million) and the absence of lower tax expense associated with the Questar Gas and PSNC Transactions ($23 million), partially offset by the absence of a loss on the closing of the East Ohio Transaction ($103 million), the absence of an impairment associated with the Questar Gas Transaction ($78 million) and the absence of charges for employee benefit items related to the East Ohio Transaction ($33 million).

Noncontrolling interests increased $46 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $22 million share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project.

Results of Operations—Virginia Power

Presented below is a summary of Virginia Power’s consolidated results:

		First Quarter
		2025				2024				$ Change
(millions)
Net income attributable to Virginia Power		$	482			$	465			$	17

Overview

First Quarter 2025 vs. 2024

Net income increased 4%, primarily due to higher rider equity returns reflecting increased capital investments and an increase in sales to electric utility customers attributable to weather. These increases were partially offset a 50% noncontrolling interest, an increase in charges associated with severe weather events including storm damage and restoration costs and a decrease in net investment earnings on nuclear decommissioning trust funds.

​

Analysis of Consolidated Operations

Presented below are selected amounts related to Virginia Power’s results of operations:

		First Quarter
		2025				2024				$ Change
(millions)
Operating revenue		$	2,765			$	2,489			$	276
Electric fuel and other energy-related purchases			769				701				68
Purchased electric capacity			7				13				(6	)
Other operations and maintenance			610				531				79
Depreciation and amortization			398				448				(50	)
Other taxes			97				93				4
Impairment of assets and other charges (benefits)			46				(17	)			63
Other income (expense)			25				63				(38	)
Interest and related charges			243				190				53
Income tax expense			92				128				(36	)
Noncontrolling interests			46				—				46

An analysis of Virginia Power’s results of operations follows:

First Quarter 2025 vs. 2024

Operating revenue increased 11%, primarily reflecting:

A $192 million increase to recover the costs and an authorized return, as applicable, associated with non-fuel riders;

A $73 million increase in sales to electric utility retail customers, primarily due to an increase in heating degree days during the heating season;

A $18 million increase in sales to electric utility retail customers associated with economic and other usage factors; and

A $16 million increase in sales to electric utility retail customers associated with growth.

These increases were partially offset by:

A $29 million decrease associated with severe weather events.

Electric fuel and other energy-related purchases increased 10%, primarily due to an increase in the use of purchased renewable energy credits, which are offset in operating revenue and do not impact net income.

Other operations and maintenance increased 15%, primarily due to an increase in charges associated with severe weather events including storm damage and restoration costs ($50 million) and an increase in salaries, wages and benefits and administrative costs ($41 million).

Depreciation and amortization decreased 11%, primarily due to the absence of RGGI-related amortization ($92 million), which is offset in operating revenue and does not impact net income, partially offset by an increase due to various projects being placed into service ($31 million).

Impairment of assets and other charges increased $63 million, primarily due to a charge for costs not expected to be recovered from customers on 100% of the CVOW Commercial Project ($45 million) and the absence of a benefit from the establishment of a regulatory asset associated with previously incurred storm damage and restoration costs in

connection with the settlement of the 2023 Biennial Review ($17 million).

Other income decreased 60%, primarily due to net investment losses in 2025 compared to net investment gains in 2024 on nuclear decommissioning trust funds ($50 million), partially offset by an increase in AFUDC associated with rate-regulated projects ($18 million).

Interest and related charges increased 28%, primarily due to an increase in long-term debt borrowings ($26 million), an increase in principal on commercial paper and intercompany borrowings with Dominion Energy ($20 million) and increased interest expense associated with rider deferrals ($12 million), which is offset in operating revenue and does not impact net income.

Income tax expense decreased 28%, primarily due to an increase in renewable energy tax credits.

Noncontrolling interests increased $46 million, due to the 50% noncontrolling interest in the CVOW Commercial Project sold to Stonepeak in October 2024, consisting of Stonepeak’s share of the earnings associated with the CVOW Commercial Project subsequent to closing, which includes a $22 million share of a charge for costs not expected to be recovered from customers on the CVOW Commercial Project.

Segment Results of Operations

Segment results include the impact of intersegment revenues and expenses, which may result in intersegment profit and loss. Presented below is a summary of contributions by Dominion Energy’s operating segments to net income (loss) attributable to Dominion Energy:

		Net Income (Loss) Attributable to Dominion Energy												EPS**(1)**
		2025				2024				$ Change				2025				2024				$ Change
(millions, except EPS)
First Quarter
Dominion Energy Virginia		$	561			$	424			$	137			$	0.66			$	0.51			$	0.15
Dominion Energy South Carolina			152				80				72				0.18				0.10				0.08
Contracted Energy			109				122				(13	)			0.13				0.14				(0.01	)
Corporate and Other			(176	)			(185	)			9				(0.22	)			(0.25	)			0.03
Consolidated		$	646			$	441			$	205			$	0.75			$	0.50			$	0.25

(1)

Consolidated results are presented on a diluted EPS basis. The dilutive impacts, primarily consisting of potential shares which had not yet been issued, are included within the results of the Corporate and Other segment. EPS contributions for Dominion Energy’s operating segments are presented utilizing basic average shares outstanding for the period.

Dominion Energy Virginia

Presented below are selected operating statistics related to Dominion Energy Virginia’s operations:

		First Quarter
		2025				2024				% Change
Electricity delivered (million MWh)			25.4				23.4				9		%
Electricity supplied (million MWh):
Utility			25.4				23.4				9
Non-Jurisdictional			0.3				0.3				—
Degree days (electric distribution and utility service area):
Cooling			20				4				400
Heating			1,942				1,659				17
Average electric distribution customer accounts (thousands)			2,800				2,771				1

​

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy Virginia’s net income contribution:

		First Quarter 2025 vs. 2024 Increase (Decrease)
		Amount				EPS
(millions, except EPS)
Weather		$	54			$	0.06
Customer usage and other factors			25				0.03
Customer-elected rate impacts			(7	)			(0.01	)
Rider equity return			133				0.16
Storm damage and restoration costs			8				0.01
Planned outage costs			6				0.01
Nuclear production tax credit			17				0.02
Sale of noncontrolling interest			(68	)			(0.08	)
Depreciation and amortization			(5	)			(0.01	)
Interest expense, net			(12	)			(0.01	)
Other			(14	)			(0.02	)
Share dilution			—				(0.01	)
Change in net income contribution		$	137			$	0.15

Dominion Energy South Carolina

Presented below are selected operating statistics related to Dominion Energy South Carolina’s operations:

		First Quarter
		2025				2024				% Change
Electricity delivered (million MWh)			5.3				5.0				6		%
Electricity supplied (million MWh)			5.5				5.3				4
Degree days (electric distribution service areas):
Cooling			—				—				—
Heating			850				620				37
Gas distribution throughput (bcf):
Sales			22				19				16
Average distribution customer accounts (thousands):
Electric			806				797				1
Gas			466				454				3

Presented below, on an after-tax basis, are the key factors impacting Dominion Energy South Carolina’s net income contribution:

		First Quarter 2025 vs. 2024 Increase (Decrease)
		Amount				EPS
(millions, except EPS)
Weather		$	20			$	0.02
Customer usage and other factors			5				0.01
Customer-elected rate impacts			5				0.01
Base rate case & Natural Gas Rate Stabilization Act impacts			44				0.05
Capital cost rider			(2	)			—
Depreciation and amortization			(4	)			—
Interest expense, net			(2	)			—
Other			6				(0.01	)
Share dilution			—				—
Change in net income contribution		$	72			$	0.08

Contracted Energy

Presented below are selected operating statistics related to Contracted Energy’s operations:

		First Quarter
		2025				2024				% Change
Electricity supplied (million MWh)			4.9				4.4				11		%

Presented below, on an after-tax basis, are the key factors impacting Contracted Energy’s net income contribution:

		First Quarter 2025 vs. 2024 Increase (Decrease)
		Amount				EPS
(millions, except EPS)
Margin		$	(12	)		$	(0.01	)
Planned Millstone outages(1)			(2	)			—
Unplanned Millstone outages(1)			12				0.01
Depreciation and amortization			(3	)			—
Other			(8	)			(0.01	)
Share dilution			—				—
Change in net income contribution		$	(13	)		$	(0.01	)

(1)

Includes earnings impact from outage costs and lower energy margins.

​

Corporate and Other

Presented below are the Corporate and Other segment’s after-tax results:

		First Quarter
		2025				2024				$ Change
(millions, except EPS)
Specific items attributable to operating segments		$	(151	)		$	124			$	(275	)
Specific items attributable to Corporate and Other segment			(6	)			(168	)			162
Net expense from specific items			(157	)			(44	)			(113	)
Corporate and other operations:
Interest expense, net			(109	)			(180	)			71
Equity method investments			(5	)			—				(5	)
Pension and other postretirement benefit plans			57				65				(8	)
Corporate service company costs			(14	)			(27	)			13
Other			52				1				51
Net expense from corporate and other operations			(19	)			(141	)			122
Total net expense		$	(176	)		$	(185	)		$	9
EPS impact		$	(0.22	)		$	(0.25	)		$	0.03

Corporate and Other includes specific items attributable to Dominion Energy’s primary operating segments that are not included in profit measures evaluated by executive management in assessing the segments’ performance or in allocating resources. See Note 21 to the Consolidated Financial Statements in this report for discussion of these items in more detail. Corporate and Other also includes items attributable to the Corporate and Other segment. For the three months ended March 31, 2025, Dominion Energy reported an insignificant amount of specific items in the Corporate and Other segment.

For the three months ended March 31, 2024, this primarily included a $239 million after-tax loss associated with lower market-related impacts on pension and other postretirement plans, $118 million net income from discontinued operations, primarily associated with operations included in the East Ohio, PSNC and Questar Gas Transactions, including the loss on sale associated with the East Ohio Transaction, as well as an impairment charge associated with the Questar Gas Transaction, and a $34 million after-tax loss for derivative mark-to-market changes.

Outlook

As of March 31, 2025, there have been no material changes to Dominion Energy’s 2025 outlook as described in Item 7. MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024. See Future Issues and Other Matters for a discussion of certain items that may have an impact on Dominion Energy’s 2025 net income on a per share basis.

Liquidity and Capital Resources

Dominion Energy depends on both cash generated from operations and external sources of liquidity to provide working capital and as a bridge to long-term financings. Dominion Energy’s material cash requirements include capital

and investment expenditures, repaying short-term and long-term debt obligations and paying dividends on its common and preferred stock.

Analysis of Cash Flows

Presented below are selected amounts related to Dominion Energy’s cash flows:

		2025				2024
(millions)
Cash, restricted cash and equivalents at January 1		$	365			$	301
Cash flows provided by (used in):
Operating activities(1)			1,183				1,982
Investing activities			(3,238	)			1,385
Financing activities			2,167				(3,332	)
Net increase in cash, restricted cash and equivalents			112				35
Cash, restricted cash and equivalents at March 31		$	477			$	336

(1)

Includes cash outflows of $18 million and $17 million for energy efficiency programs in Virginia for the three months ended March 31, 2025 and 2024, respectively, and $6 million and $5 million for DSM programs in South Carolina for the three months ended March 31, 2025 and 2024, respectively.

Operating Cash Flows

Net cash provided by Dominion Energy’s operating activities decreased $799 million, inclusive of a $493 million decrease from discontinued operations. Net cash provided by continuing operations decreased $306 million primarily due to lower deferred fuel and purchased gas cost recoveries ($603 million), partially offset by an increase from changes in working capital ($267 million).

Investing Cash Flows

Net cash used in Dominion Energy’s investing activities decreased $4.6 billion, primarily due to the absence of net proceeds from the East Ohio Transaction in 2024 ($4.3 billion), an increase in plant construction and other property additions ($444 million) and the absence of distributions from equity method affiliates in 2024 ($126 million), partially offset by lower acquisitions of solar development projects ($160 million).

Financing Cash Flows

Net cash from Dominion Energy’s financing activities increased $5.5 billion, primarily due to the absence of net repayments on 364-day term loan facilities in 2024 ($3.8 billion), an increase in net issuances of long-term debt ($1.5 billion) and capital contributions from Stonepeak to OSWP ($400 million), partially offset by higher net repayments of short-term debt ($86 million).

Credit Facilities and Short-Term Debt

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, Dominion Energy generally uses proceeds from short-term borrowings, including commercial paper, to satisfy short-term cash requirements not met through cash from operations. The levels of borrowing may vary significantly during the course of the year, depending on the timing and amount of cash requirements not satisfied by cash from operations. There have been no significant changes to Dominion Energy’s use of credit facilities and/or short-term debt during the three months ended March 31, 2025.

Joint Revolving Credit Facility

Dominion Energy’s short-term financing is supported by its joint revolving credit facility. In April 2025, Dominion Energy amended its $6.0 billion joint revolving credit facility to, among other things, increase the facility limit to $7.0 billion and extend the maturity date from June 2026 to April 2030. At March 31, 2025, Dominion Energy had $4.4 billion of unused capacity under its joint revolving credit facility. See Note 16 to the Consolidated Financial Statements in this report for the balances of commercial paper and letters of credit outstanding.

Dominion Energy Reliability Investment**SM Program

Dominion Energy has an effective shelf registration statement with the SEC for the sale of up to $3.0 billion of variable denomination floating rate demand notes, called Dominion Energy Reliability InvestmentSM. The registration limits the principal amount that may be outstanding at any one time to $1.0 billion. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Dominion Energy Reliability Investment Committee, or its designee, on a weekly basis. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Dominion Energy or at the investor’s option at any time. At March 31, 2025, Dominion Energy’s Consolidated Balance Sheet included $446 million presented within short-term debt. The proceeds are used for general corporate purposes and to repay debt.

Other Facilities

In addition to the primary sources of short-term liquidity discussed above, from time to time Dominion Energy enters into separate supplementary credit facilities or term loans as discussed in Note 16 to the Consolidated Financial Statements in this report, such as the $1.0 billion 364-day revolving credit agreement entered into in April 2025.

Long-Term Debt

Sustainability Revolving Credit Agreement

In April 2025, the Sustainability Revolving Credit Agreement, which is described in Note 18 to the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, was amended to, among other things, increase the facility limit from $900 million to $1.0 billion and extend the maturity date from June 2025 to April 2028. At March 31, 2025, Dominion Energy had no borrowings outstanding under this facility. See Note 16 to the Consolidated Financial Statements in this report for additional information.

Issuances and Borrowings of Long-Term Debt

During the three months ended March 31, 2025, Dominion Energy issued or borrowed the following long-term debt. Unless otherwise noted, the proceeds were used for the repayment of existing indebtedness and for general corporate purposes.

Month		Type		Public / Private		Entity		Principal				Rate					Stated Maturity
(millions)
January		First mortgage bonds		Public		DESC		$	450				5.300		%		2035
March		Senior notes		Public		Virginia Power			625				5.150				2035
March		Senior notes		Public		Virginia Power			625				5.650				2055
March		Senior notes		Public		Dominion Energy			800				5.000				2030
March		Senior notes		Public		Dominion Energy			700				5.450				2035
Total issuances and borrowings								$	3,200

Dominion Energy currently meets the definition of a well-known seasoned issuer under SEC rules governing the registration, communication and offering processes under the Securities Act of 1933, as amended. The rules provide for a streamlined shelf registration process to provide registrants with timely access to capital. This allows Dominion Energy to use automatic shelf registration statements to register any offering of securities, other than those for exchange offers or business combination transactions.

Dominion Energy anticipates, excluding potential opportunistic financings, issuing between approximately $5.5 billion and $8.0 billion of long-term debt during 2025, inclusive of amounts issued through March 31, 2025 as shown in the table above. Dominion Energy expects to issue long-term debt to satisfy cash needs for capital expenditures, net of reimbursements from Stonepeak for the CVOW Commercial Project, and maturing long-term debt to the extent such amounts are not satisfied from cash available from operations following the payment of dividends and any borrowings made from unused capacity of Dominion Energy’s credit facilities discussed above. The raising of external capital is subject to certain regulatory requirements, including registration with the SEC for certain issuances.

Repayments, Repurchases and Redemptions of Long-Term Debt

Dominion Energy may from time to time reduce its outstanding debt and level of interest expense through redemption of debt securities prior to maturity or repurchases of debt securities in the open market, in privately negotiated transactions, through tender offers or otherwise.

The following long-term debt was repaid, repurchased or redeemed during the three months ended March 31, 2025:

Month		Type		Entity		Principal (1)				Rate		Stated Maturity
(millions)
Debt scheduled to mature in 2025				Multiple		$	400			various
Early repurchases and redemptions
None
Total repayments, repurchases and redemptions						$	400

(1)

Total amount redeemed prior to maturity includes remaining principal plus accrued interest.

See Note 18 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding scheduled maturities of Dominion Energy’s long-term debt, including related average interest rates.

Remarketing of Long-Term Debt

During the three months ended March 31, 2025, Dominion Energy was not required to and did not complete the remarketing of any of its long-term debt. In 2025, Dominion Energy expects to remarket approximately $225 million of its tax-exempt bonds.

Credit Ratings

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, Dominion Energy’s credit ratings affect its liquidity, cost of borrowing under credit facilities and collateral posting requirements under commodity contracts, as well as the rates at which it is able to offer its debt securities. The credit ratings for Dominion Energy are affected by its financial profile, mix of regulated and nonregulated businesses and respective cash flows, changes in methodologies used by the rating agencies and event risk, if applicable, such as major acquisitions or dispositions. A credit rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. Ratings are subject to revision or withdrawal at any time by the applicable rating organization. As of March 31, 2025, there have been no changes in Dominion Energy’s credit ratings from those described in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

Financial Covenants

As discussed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, Dominion Energy is subject to various covenants present in the agreements underlying Dominion Energy’s debt. As of March 31, 2025, there have been no material changes to these covenants, nor any events of default under these covenants. As discussed in Note 16 to the Consolidated Financial Statements of this report, Dominion Energy entered into an amended joint revolving credit facility as well as an amended Sustainability Revolving Credit Agreement. Within both agreements, the

calculation of equity utilized in the total debt to total capital ratio was updated for a technical clarification. In addition, under the amended joint revolving credit facility, if Dominion Energy or any of its material subsidiaries failed to make payment on various debt obligations in excess of $250 million, or $150 million for DESC, the lenders could require the defaulting company, if it is a borrower under Dominion Energy’s joint revolving credit facility, to accelerate its repayment of any outstanding borrowings and the lenders could terminate their commitments, if any, to lend funds to that company under the credit facility.

As discussed in Note 16 to the Consolidated Financial Statements of this report, in April 2025, Dominion Energy also entered into a new $1.0 billion 364-day revolving credit agreement, which includes a maximum allowed total debt to total capital ratio that is consistent with the allowed ratio under these two facilities.

Common Stock, Preferred Stock and Other Equity Securities

In the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024, there is a discussion of Dominion Energy’s existing equity financing programs, including Dominion Energy Direct®. During the three months ended March 31, 2025, Dominion Energy issued $35 million of stock through these programs, net of fees and commissions. During the first quarter of 2025, Dominion Energy entered forward sale agreements under its May 2024 at-the-market program for approximately 8.8 million shares of its common stock expected to be settled in the fourth quarter of 2025 at a weighted-average initial forward price of $55.34 per share. Including the forward sale agreements entered from September through December 2024, Dominion Energy has entered forward sale agreements for approximately 18.5 million shares of its common stock expected to be settled in the fourth quarter of 2025 at a weighted-average initial forward price of $56.62 per share. In February 2025, Dominion Energy entered into a new at-the-market-program. As of March 31, 2025, Dominion Energy has not issued any shares or entered into any forward sale agreements under this program. See Note 16 to the Consolidated Financial Statements in this report for additional information.

Through March 31, 2025, Dominion Energy has not repurchased and does not plan to repurchase shares of common stock in 2025, except for shares tendered by employees to satisfy tax withholding obligations on vested restricted stock, which does not impact the available capacity under its stock repurchase authorization. See Note 16 to the Consolidated Financial Statements in this report for additional information.

Capital Expenditures

As of March 31, 2025, there have been no material changes to Dominion Energy’s expectation for planned capital expenditures as disclosed in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

​

Dividends

Dominion Energy believes that its operations provide a stable source of cash flow to contribute to planned levels of capital expenditures and maintain or grow the dividend on common shares. See Note 16 to the Consolidated Financial Statements in this report for additional information regarding Dominion Energy’s outstanding preferred stock and associated dividend rate.

Subsidiary Dividend Restrictions

As of March 31, 2025, there have been no material changes to the subsidiary dividend restrictions disclosed in the Subsidiary Dividend Restrictions section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

Collateral and Credit Risk

As of March 31, 2025, there have been no material changes to the collateral requirements disclosed in the Collateral and Credit Risk section of MD&A in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

Dominion Energy’s exposure to potential concentrations of credit risk results primarily from its energy marketing and price risk management activities. Presented below is a summary of Dominion Energy’s credit exposure at March 31, 2025 for these activities. Gross credit exposure for each counterparty is calculated as outstanding receivables plus any unrealized on- or off-balance sheet exposure, taking into account contractual netting rights.

		Gross Credit Exposure				Credit Collateral				Net Credit Exposure
(millions)
Investment grade(1)		$	60			$	—			$	60
Non-investment grade(2)			11				—				11
No external ratings:
Internally rated—investment grade(3)			62				—				62
Internally rated—non-investment grade(4)			11				—				11
Total(5)		$	144			$	—			$	144

(1)

Designations as investment grade are based upon minimum credit ratings assigned by Moody’s and Standard & Poor’s. The five largest counterparty exposures, combined, for this category represented approximately 32% of the total net credit exposure.

(2)

The five largest counterparty exposures, combined, for this category represented approximately 8% of the total net credit exposure.

(3)

The five largest counterparty exposures, combined, for this category represented approximately 43% of the total net credit exposure.

(4)

The five largest counterparty exposures, combined, for this category represented approximately 5% of the total net credit exposure.

(5)

Excludes long-term purchase power agreements entered to satisfy legislative or state regulatory commission requirements.

Fuel and Other Purchase Commitments

There have been no material changes outside of the ordinary course of business to Dominion Energy’s fuel and other purchase commitments included in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024.

Other Material Cash Requirements

In addition to the financing arrangements discussed above, Dominion Energy is party to numerous contracts and arrangements obligating it to make cash payments in future

years. Dominion Energy expects current liabilities to be paid within the next twelve months. In addition to the items already discussed, the following represent material expected cash requirements recorded on Dominion Energy’s Consolidated Balance Sheet at March 31, 2025. Such obligations include:

Operating and finance lease obligations – See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024;

Regulatory liabilities – See Note 12 to the Consolidated Financial Statements in this report;

AROs – See Note 14 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024;

Employee benefit plan obligations – See Note 20 to the Consolidated Financial Statements in this report and Note 22 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024;

In addition, Dominion Energy is party to contracts and arrangements which may require it to make material cash payments in future years that are not recorded on its Consolidated Balance Sheets. Such obligations include:

Off-balance sheet leasing arrangements – See Note 15 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024; and

Guarantees – See Note 17 to the Consolidated Financial Statements in this report.

Future Issues and Other Matters

See Item 1. Business, Future Issues and Other Matters in MD&A and Notes 13 and 23 to the Consolidated Financial Statements in the Companies’ Annual Report on Form 10-K for the year ended December 31, 2024 and Notes 13 and 17 to the Consolidated Financial Statements in this report for additional information on various environmental, regulatory, legal and other matters that may impact future results of operations, financial condition and/or cash flows.

CVOW Commercial Project

In September 2019, Virginia Power filed applications with PJM for the CVOW Commercial Project and for certain approvals and rider recovery from the Virginia Commission in November 2021. The 2.6 GW project is expected to be placed in service by the end of 2026 with an estimated total project cost of approximately $10.8 billion, excluding financing costs, that reflects an estimated impact of certain tariffs which became effective in March and April 2025. The Companies’ projected impact of tariffs on expected total project cost is subject to change due to the inherent uncertainty associated with which tariffs, if any, may be in effect and the associated requirements and rates of such tariffs. Virginia Power’s estimate for the project’s projected levelized cost of energy, including renewable energy credits, is approximately $62/MWh, compared to the initial filing submission of $80-90/MWh.

The expected total project cost increase of $0.1 billion relative to Virginia Power’s February 2025 construction update filing with the Virginia Commission reflects current projections of tariffs on equipment expected to be delivered from March 2025 through the end of the second quarter of 2025 that either contains steel and/or originates from Mexico, Canada, a European Union member or other applicable countries. The actual tariffs to be incurred are dependent upon the tariff requirements and rates, if any, at the time of delivery of the specific component. If the current tariffs were to remain in effect through the end of 2026, the expected project costs for offshore wind and onshore electrical interconnection equipment could increase by up to approximately $0.4 billion.

The estimated total project cost above reflects the Companies’ best estimate of the remaining construction costs, including contingency of approximately 6% on such remaining amounts. Such estimate could potentially change for items, certain of which are beyond the Companies’ control, including but not limited to actual network upgrade costs allocated by PJM, fuel for transportation and installation, the impact of applicable tariffs, if any, costs to maintain necessary permits, approvals and authorizations, ability of key suppliers and contractors to timely satisfy their obligations under existing contracts, marine wildlife and/or any severe weather events.

Virginia Power commenced major onshore construction activities for the CVOW Commercial Project in November 2023 following the receipt of a record of decision from BOEM in October 2023 for construction. Onshore construction activities are anticipated to be completed in early 2026. Virginia Power commenced major offshore construction activities in May 2024 following the receipt of final approval from BOEM authorizing offshore construction and necessary permits from the U.S. Army Corps of Engineers for offshore construction in January 2024. During the first installation season which concluded in October 2024, 78 monopiles were installed with the remaining 98 monopiles expected to be installed during the second installation season which runs from May 2025 through October 2025. Transition pieces began to be installed on monopiles near the end of 2024 with 59 transition pieces installed through April 2025 and the remaining 117 expected to be installed by early 2026. The first of three offshore substations was installed in March 2025. Deepwater cables commenced being laid in late 2024 with five of nine completed through April 2025 and an expected 260 miles of interarray cable ultimately to be laid throughout 2025 and 2026. Turbines are expected to commence installment in the second half of 2025 and be completed by the end of 2026.

ITEM 3. QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

The matters discussed in this Item may contain “forward-looking statements” as described in the introductory paragraphs under Part I., Item 2. MD&A in this report. The reader’s attention is directed to those paragraphs for discussion of various risks and uncertainties that may impact the Companies.

Market Risk Sensitive Instruments and Risk Management

The Companies’ financial instruments, commodity contracts and related financial derivative instruments are exposed to potential losses due to adverse changes in commodity prices, interest rates, foreign currency exchange rates and equity securities prices as described below. Commodity price risk is present in the Companies’ electric operations and Dominion Energy’s natural gas procurement and marketing operations due to the exposure to market shifts in prices received and paid for electricity, natural gas and other commodities. The Companies use commodity derivative contracts to manage price risk exposures for these operations. Interest rate risk is generally related to their outstanding debt and future issuances of debt. In addition, the Companies are exposed to investment price risk through various portfolios of equity and debt securities. The Companies’ exposure to foreign currency exchange rate risk is related to certain fixed price contracts associated with the CVOW Commercial Project which it manages through foreign currency exchange rate derivatives. The contracts include services denominated in currencies other than the U.S. dollar for approximately €2.6 billion and 5.1 billion kr. In addition, certain of the fixed price contracts, approximately €0.7 billion, contain commodity indexing provisions linked to steel.

The following sensitivity analysis estimates the potential loss of future earnings or fair value from market risk sensitive instruments over a selected time period due to a 10% change in commodity prices, interest rates or foreign currency exchange rates.

Commodity Price Risk

To manage price risk, the Companies hold commodity-based derivative instruments held for non-trading purposes associated with purchases and sales of electricity, natural gas and other energy-related products.

The derivatives used to manage commodity price risk are executed within established policies and procedures and may include instruments such as futures, forwards, swaps, options and FTRs that are sensitive to changes in the related commodity prices. For sensitivity analysis purposes, the hypothetical change in market prices of commodity-based derivative instruments is determined based on models that consider the market prices of commodities in future periods, the volatility of the market prices in each period, as well as the time value factors of the derivative instruments. Prices and volatility are principally determined based on observable market prices.

A hypothetical 10% increase in commodity prices would have resulted in a decrease of $30 million and $18 million in the fair value of Dominion Energy’s commodity-based derivative instruments as of March 31, 2025 and December 31, 2024, respectively.

A hypothetical 10% decrease in commodity prices would have resulted in a decrease of $10 million and $15 million in the fair value of Virginia Power’s commodity-based derivative instruments as of March 31, 2025 and December 31, 2024, respectively.

The impact of a change in energy commodity prices on the Companies’ commodity-based derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net losses from commodity-based financial derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction, such as revenue from physical sales of the commodity.

Interest Rate Risk

The Companies manage their interest rate risk exposure predominantly by maintaining a balance of fixed and variable rate debt. For variable rate debt outstanding for Dominion Energy, a hypothetical 10% increase in market interest rates would result in a $10 million and $12 million decrease in earnings at March 31, 2025 and December 31, 2024, respectively. For variable rate debt outstanding for Virginia Power, a hypothetical 10% increase in market interest rates would result in an $9 million and $7 million decrease in earnings at March 31, 2025 and December 31, 2024, respectively.

The Companies also use interest rate derivatives, including forward-starting swaps, interest rate swaps and interest rate lock agreements to manage interest rate risk. As of March 31, 2025, Dominion Energy and Virginia Power had $13.6 billion and $3.5 billion, respectively, in aggregate notional amounts of these interest rate derivatives outstanding in combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $51 million and $31 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at March 31, 2025. As of December 31, 2024, Dominion Energy and Virginia Power had $10.8 billion and $3.8 billion, respectively, of these interest rate derivatives outstanding in combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions. A hypothetical 10% decrease in market interest rates would have resulted in a decrease of $157 million and $155 million, respectively, in the fair value of Dominion Energy and Virginia Power’s interest rate derivatives at December 31, 2024.

The impact of a change in interest rates on the Companies’ interest rate-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from interest rate derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Foreign Currency Exchange Rate Risk

The Companies utilize foreign currency exchange rate swaps to economically hedge the foreign currency exchange risk associated with fixed price contracts related to the CVOW Commercial Project denominated in foreign currencies. As of March 31, 2025 and December 31, 2024, Dominion Energy had €938 million and €1.1 billion, respectively, in aggregate notional amounts of these foreign currency forward purchase agreements outstanding. A hypothetical 10% increase in exchange rates would have resulted in a decrease of $92 million and $106 million in the fair value of Dominion Energy’s foreign currency swaps at March 31, 2025 and December 31, 2024, respectively.

The impact of a change in exchange rates on the Companies’ foreign currency-based financial derivative instruments at a point in time is not necessarily representative of the results that will be realized when the contracts are ultimately settled. Net gains and/or losses from foreign exchange derivative instruments used for hedging purposes, to the extent realized, will generally be offset by recognition of the hedged transaction.

Investment Price Risk

The Companies are subject to investment price risk due to securities held as investments in nuclear decommissioning and rabbi trust funds that are managed by third-party investment managers. These trust funds primarily hold marketable securities that are reported in the Companies’ Consolidated Balance Sheets at fair value.

Dominion Energy recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $(197) million, $529 million and $1.1 billion for the three months ended March 31, 2025 and 2024 and the year ended December 31, 2024, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Dominion Energy recorded in AOCI and regulatory liabilities, a net increase in unrealized (losses) gains on debt investments of $30 million for the three months ended March 31, 2025 and $(28) million for the year ended December 31, 2024, and a net decrease of $55 million for the three months ended March 31, 2024.

Virginia Power recognized net investment gains (losses) (including investment income) on nuclear decommissioning and rabbi trust investments of $(98) million, $276 million and $580 million for the three months ended March 31, 2025 and 2024 and the year ended December 31, 2024, respectively. Net realized gains and losses include gains and losses from the sale of investments as well as any other-than-temporary declines in fair value. Virginia Power recorded in AOCI and regulatory liabilities, a net increase in unrealized gains (losses) on debt investments of $12 million for the three months ended March 31, 2025 and $(10) million for the year ended December 31, 2024, and a net decrease of $32 million for the three months ended March 31, 2024.

Dominion Energy sponsors pension and other postretirement employee benefit plans that hold investments in trusts to fund employee benefit payments. Virginia Power employees participate in these plans. Differences between actual and expected returns on plan assets are immediately recognized in earnings annually in the fourth quarter of each fiscal year as well as whenever a plan is determined to qualify for a remeasurement. A hypothetical 0.25% decrease in the expected long-term rate of return on plan assets would have a $28 million for the year ending December 31, 2025, and would have had a $31 million impact for the year ended December 31, 2024, to the expected returns on plan assets.